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Section 269C of the Income-tax Act, 1961 - Acquisition of immovable property - Determination of fair market value - In respect of transfer of certain plot of land by two persons jointly to two brothers in equal half share for certain consideration, IAC initiated acquisition proceedings on ground that its fair market value exceeded apparent consideration by more than 15 per cent - Transferees urged before Tribunal that their properties should have been separately valued and that IAC should not have made one composite order in respect of two separate and distinct proceedings - Tribunal allowed transferees' appeal as also additional ground urged for first time before it that proceedings initiated by service of notice on them before publication in Official Gazette amounted to invalid assumption of jurisdiction by IAC - Whether Tribunal erred in (a) allowing additional ground, (b) ignoring importance of locality where property was situated while determining its fair market value, and (c) refusing to take into consideration sale transaction in respect of certain other properties of same locality simply because of competent authority's failure to initiate proceedings in those cases under Chapter XX-A - Held, yes [Matter remitted to IAC for fresh disposal] Facts A certain vacant plot of land owned by two persons was transferred in equal half share to two brothers for a consideration of Rs. 60,125. Taking the view that the fair market value of the property exceeded the apparent consideration by more than 15 per cent, the IAC issued notices under section 269D. While the notice was published in the Official Gazette on 8-6-1974, it was served on the transferors and transferees on 25-3-1974 and 3-4-1974, respectively. In response to the notices, they contended the consideration stated in the instrument of transfer was the real consideration and that it represented the fair market value of the property. They, however, did not raise any objection to the IAC's jurisdiction. The IAC, after examining the evidence on record, directed the acquisition of the property under section 269F(6). The Tribunal, however, allowed the transferees' appeal as also an additional ground urged…

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